News
Taiwan Now Represents the Asia Pacific Region's Most Attractive Retail Investment Opportunity
DUBLIN, Ireland-(Business Wire)-February 14, 2008 - Research and Markets (http://www.researchandmarkets.com/reports/c82705) has announced the addition of Taiwan Food and Drink Report 2007 to their offering.
The Taiwan Food Drink Report provides independent forecasts and competitive intelligence on Taiwan's food and drink industry.
Taiwan has once again shaken off regional competition to stand alone at the head of the latest Retail Business Environment Rankings. The country now represents the Asia Pacific region's most attractive retail investment opportunity and in the newly-published Taiwan Food & Drink Report, we examine why the market remains attractive to investors in spite of its advanced state of maturity and the higher growth opportunities that exist in its vast neighbour China.
It is safe to say that a new arrival to Taiwan's mass grocery retail sector is unlikely. The industry is already highly competitive and consolidated and this situation was only furthered recently when one of the market leaders Carrefour acquired departing giant Tesco. However, the remaining players continue to pump capital into the sector, unwilling to go the way of Tesco and unwilling to compromise an inch in terms of market share.
An obvious reason for commitment to Taiwan, regardless of interest in China, is the profitability of the market right now. If their retail offerings are pitched correctly, The report does not doubt that multinationals and Taiwanese retailers alike will have phenomenal success in China in the future. However, at present retailers are for the most part merely investing in the possibility of future profitability. To sustain these sort of investments, retailers need markets in which they are already profitable. Taiwan, with its strong economy, low unemployment levels and high consumer confidence represents one such market. Similarly, although private labelling and price wars are becoming more common in Taiwan, retailers can afford to pitch their offering at the premium end of the market, hence the success of the convenience sector - a format which has traditionally provided added-value, in return for higher profits.
However, the author does not agree with many industry analysts who perceive Taiwan as a stable and soon to be declining retail market. In fact, the author is forecasting mass grocery retail sales growth of 43.5% to 2010, a far cry from many of the conservative estimations in circulation. Accounting for this forecast is the demanding nature of Taiwanese consumers who support constant premiumisation and innovation in the retail industry. All retailers need to constantly invest in the upgrading and modernisation of their retail offering to avoid losing customers to the retailer that does continue to pursue this premiumisation. Added value offerings that are considered to be the height of premiumisation in some regional markets are quickly abandoned in favour of something even more convenient or even more innovative in the case of Taiwan. Customers are in a position, and willing, to pay the price of this pace of change, and it is this that will sustain impressive growth in the industry regardless of its maturity. Sector crowding may well limit the potential of Taiwan to an outsider, but it has done nothing to dampen the dynamic nature of the industry internally.
Executive Summary
Chapter 1 - Business Environment
Retail Business Environment Rankings
Table: Asia/Pacific Business Environment Rankings
SWOT Analysis
Taiwan Food & Drink Industry SWOT
Macroeconomic Outlook
Table: Population & Output
Chapter 2 - Retail
Retail Regional Overview - Convenience Retail In Asia Pacific
Table: Number Of Convenience Stores In Selected Asia Pacific Markets
Table: Convenience Store Sales And Sales Growth In Selected Asia Pacific Markets - Historical Data (US$mn)
Table: Annual Average Convenience Stores Sales Vs Average MGR Sales By Outlet (US$mn)
Table: Seven-Eleven Global Store Network
Industry Forecast Scenario
Table: Taiwan Retail Indicators - Sales Value by Format - Historical Data & Forecasts
Company Developments
Market Overview
Table: Structure of Taiwan's Mass Grocery Retail Market by Number of Outlets
Table: Structure of Taiwan's Mass Grocery Retail - Sales Value by Format (US$bn)
Table: Average Sales per Outlet by Format (US$mn) - 2005
Chapter 3 - Food & Drink
Regional Overview - Bottled Water In Asia Pacific
Table: Water Contamination Levels In Pakistan's Major Cities - 2004
Industry Forecast Scenario
Table: Food Consumption Indicators - Historical Data & Forecasts
Company Developments
Market Overview
Table: Taiwan Agricultural Sub-Sector Production - Historical Data
Chapter 4 - Tobacco
Industry Forecast Scenario
Table: Cigarette Value/Volume Sales - Historical Data & Forecasts
Industry Developments
Market Overview
Chapter 5 - Competitive Landscape
Key Players
Table: Key Players in Taiwan's Mass Grocery Retail Sector - 2005
Table: Key Players in Taiwan's Food & Drink Sector - 2005
Regional Company Case Studies
Danone in Asia Pacific
Table: Danone Fiscal Year 2005 Financial Results
Table: Danone In Asia Pacific Region
Wal-Mart In Asia Pacific
Table: Wal-Mart In FY06 (ending January 31 2006)
Table: Wal-Mart In China
Table: Wal-Mart In Japan (Seiyu
Table: Wal-Mart Planned Store Openings For Financial Year 2008 (commencing February 1 2007)
AEON in Asia Pacific
Table: AEON Five-year Financials (JPYmn)
Table: Speciality Store Network (as at February 20 2006)
Coca-Cola Amatil in Asia Pacific
Table: Coca-Cola Amatil Five-Year Financials
Table: Coca-Cola Amatil Market Share By Country And By Beverage Sub-sector - As At Year-End 2005
Table: SPC Ardmona Market Share By Product Category
Company Analysis
Taiwan FamilyMart Co
Carrefour Taiwan
Uni-President Chain Store Corp
I-Mei Foods Co Ltd
Taiwan Tobacco & Liquor Corp - Beverage arm
Our Forecast Modelling
How we generate our industry forecasts
Retail Industry
Sources
Our Forecast Modelling
How we generate our industry forecasts
Retail Industry
Sources
Companies Mentioned:
- Carrefour Taiwan
- I-Mei Foods Co Ltd
- Taiwan FamilyMart Co
- Taiwan Tobacco & Liquor Corp
- Uni-President Chain Store Corp
For more information visit http://www.researchandmarkets.com/reports/c82705
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